the fiscal cliff, hudson predicts that 15% slowdown in orders next year. >> it could be june before we start seeing orders and if that's true, i will end up laying off people. >> reporter: hudson is also concerned about taxes. because it's profits are treated as income, that puts them over $250,000 a year. the level where president obama wants taxes to go up. >> i'm supposedly a rich guy? i don't think so! i think we ought to pay our share. but that could have a significant impact to the point that i may have to lay off one or two more people. >> reporter: the financial impact of the affordable health care act is also a question mark as the plan slowly phases in. >> i believe in families and support and the employees but again it's a big unknown. we have looked at whether it might just be beneficial to cancel insurance and pay the penalties. >> reporter: like any military man, hudson is running every scenario to stay in business. >> it's really sad, isn't it? and we've got to fight our own system to survive. >> reporter: an attitude shared by many small entrepreneurs as they wait and watch.